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This chapter reviews the theory of the voluntary public and private redistribution of wealth elaborated by economic analysis in the last forty years or so. The central object of the theory is altruistic gift-giving, construed as benevolent voluntary redistribution of income or wealth. The theory...
Persistent link: https://www.econbiz.de/10014023678
In order to analyze conflict and cooperation between a State and a non ruling group in a general equilibrium, I unite pure rent-seeking models and economic models of conflict under an assumption of incomplete property rights. I show that a unique and globally stable Nash equilibrium exists in...
Persistent link: https://www.econbiz.de/10005556945
We examine the effect of prospects of upward mobility (POUM) on the support for redistribution in an intragenerational context. In this context, existing literature so far fails to consider the potential indirect channel via political ideology through which mobility expectations affect...
Persistent link: https://www.econbiz.de/10011822779
This paper analyzes the political economy of redistribution between two income groups in a dynamic economy and provides theoretical linkages between lobbying activities, income distribution and growth. It explains why the relationship between redistribution and growth is non-monotonic. Moreover,...
Persistent link: https://www.econbiz.de/10014068613
We study political competition in an environment in which voters have private information about their preferences. Our framework covers models of income taxation, public-goods provision or publicly provided private goods. Politicians are vote-share-maximizers. They can propose any policy that is...
Persistent link: https://www.econbiz.de/10010358277
We study the effect of power sharing over income redistribution among different socio-economic groups in a model of redistributive politics with fairness concern. We prove that a unique pure-strategy equilibrium exists under fairly general conditions; and we show that equilibrium transfers...
Persistent link: https://www.econbiz.de/10011563113
We analyze a political competition model of redistributive policies. We provide an equilibrium existence result and a full characterization of the net transfers to the different income groups. We also derive several testable predictions about the way in which the net group transfers and the...
Persistent link: https://www.econbiz.de/10012854035
This paper studies electoral competition in a model of redistributive politics with deterministic voting and heterogeneous voter loyalties to political parties. We construct a natural measure of party strength based on the sizes and intensities of a party's loyal voter segments and demonstrate...
Persistent link: https://www.econbiz.de/10014060651
In a two-period model with agent heterogeneity we analyze a pension reform toward a stronger link between contributions and benefits (as recently observed in several countries) in a pension system with a Bismarckian and a Beveridgean component. We show that such a policy change may discourage...
Persistent link: https://www.econbiz.de/10010596096
In this paper we deal with voluntary and compulsory redistribution in an economy where the enforcement of property rights is costly. Two agents engage in a common-pool contest and two types of potential distortions arise: the waste of resources in the contest and the dilution of incentives to...
Persistent link: https://www.econbiz.de/10010263060